Uber now offers its own car leases to UberX drivers

As Uber continues to evolve beyond just dominating on-demand rides, the company is furthering its bets on leasing cars to drivers. Uber announced today a new pilot program, called Xchange Leasing, allowing Uber to directly lease cars to its UberX drivers. UberX is the ride-sharing company’s cheapest ride service.

Uber previously launched a leasing program in the U.S. in late 2013. The company partnered with General Motors GM , Toyota TM , and other financial institutions to lease cars to Uberx drivers, while also reducing drivers’ monthly payments. The idea behind the initial leasing program was that Uber had data on the cash flow from drivers, which could in turn lower their risk to lenders. Under the program, drivers could borrow at better interest rates than they might find through traditional leasing programs, and be able to get on the road faster.

Uber says that nearly 20,000 drivers participated in the U.S. program and have collectively taken home over $200 million dollars driving with Uber. For background, Uber has around 160,000 UberX drivers in the U.S.

The next iteration of the program, Xchange Leasing, involves cutting out intermediaries and directly leasing to drivers. The leases are administered by an Uber subsidiary (owned and funded by Uber) and the leases are designed to fit the financial and driving needs of an Uber driver.

Unlike most multi-year leases that have high penalty fees for early termination, drivers who participate in Xchange for at least 30 days will be able to return the car with only two weeks notice and limited additional costs. The program also includes unlimited mileage and the option to lease a used car, with routine maintenance also included.

Xchange Leasing is currently being tested in major U.S. cities, including Los Angeles, San Francisco, and San Diego in California. Select cities in Georgia and Maryland will also be able to participate.

In a conversation with Fortune, Uber’s head of vehicle solutions Andrew Chapin explained that the idea for Uber offering its own leases was inspired by wanting a more flexible, and cost-effective way for UberX drivers to lease cars. The current vehicle leasing options are not well suited for Uber drivers, he reiterated.

Here’s an example of the rates Uber will now offer:

Approx. $120 per week for a 2013 Camry with a sale price of around $15,000 and 36 month lease term

Approx. $110 per week for a 2013 Corolla with a sale price of around $13,500 and 36 month lease term

On the regulatory front, Uber is not taking any risks with leasing, he says, as the industry is highly regulated. Xchange Leasing is currently compliant with regulations, both at the state and federal levels, and as a lessor, Uber has received the requisite licenses to administer car leases.

It’s worth noting that Chapin acknowledged the company is getting ahead of any regulatory issues by working with agencies to make sure the leasing company is licensed. Uber has famously (and continues to) battle regulators across the world as government agencies attempt to control, and even ban, the transportation company.

For now Uber is funding Xchange Leasing with its own capital (Uber has raised nearly $6 billion in equity and debt since it was founded five years ago).

Other startups, like Breeze, have tried to capitalize on the leasing business and have targeted drivers who work for ride-sharing companies like Uber and Lyft.

These startups are doing so because lending can be a money making business. However, Chapin says that profits are not Uber’s goal with wanting to offer leases, and the intention is to break even with costs and sales.

Uber has partnered with local dealerships in California, Georgia, and Maryland to offer Xchange leases for the types of cars that Uberx accepts on platform, including vehicles made by Toyota, GM, Ford, Chrysler and other auto makers.

The company will continue to provide leases through third-party lessors, such as Westlake, or BAMA Leasing. But Uber wants to have the most flexible option catered to the needs of an UberX driver, said Chapin.

Uber has also allowed for drivers to receive discounts on car purchases from auto manufacturers, including Toyota, GM, Ford, Hyundai, Nissan, VW, and Chrysler. To date, Uber says drivers have saved over $7 million through these discounts.

Lastly, Uber is also piloting its car rental plan, which allows UberX drivers to rent cars by the week in Atlanta, Dallas, and Nashville. Through a partnership with Cox automotive-owned Flexdrive, drivers can rent cars with insurance and maintenance included.

For Uber, having its own flexible leasing terms means more new drivers could be approved to offer rides on its platforms. And that all leads to more revenue for the ride-sharing company, which was last valued valued at $50 billion, according to reports.

This company just overtook Toyota to become the world’s top automaker

During the first six months of 2015, Toyota sold 5.02 million cars. That represents a decline of 1.5% compared to the first half of 2014. More importantly in terms of bragging rights for automakers, Toyota’s total was slightly less than German rival Volkswagen, which sold 5.04 million vehicles from January through June of 2015.

Toyota has traditionally held the top spot in terms of global auto sales, though there have been flukey years like 2011, when natural disasters in Asia pushed the automaker to third place worldwide. Volkswagen, which sold just 6.2 million cars for all of 2007, has established a goal of selling 10+ million vehicles per year by 2018, if not sooner. The automaker came close in 2013, selling 9.73 million passenger cars and superseding General Motors as the world’s #2 automaker in the process.

Volkswagen just barely crossed the 10 million sales mark in 2014, and it is on pace to do so again in 2015, perhaps while taking the overall global sales crown as well. To do so, Volkswagen, which owns Audi and Porsche in addition to its flagship mid-market brand, must continue to post big sales in China—which won’t be an easy task.

“VW is snatching the sales crown in difficult times with major car markets in decline,” Stefan Bratzel, head of Germany’s Center of Automotive Management, said to the BBC. “They will need to withstand the slowdown in China if they want to keep the top spot.”

Toyota has struggled in China and wants to improve sales there. But overall, the Japanese automaker has stressed for quite some time that it’s not particularly worried about holding the global top spot for sales. “Their focus is not No. 1,” Peggy Furusaka, a Tokyo- based auto-credit analyst at Moody’s Investors Service, observed in January. “Toyota is more concerned about keeping profitability than chasing numbers. So for coming years, I wouldn’t be surprised to see Toyota selling fewer cars than Volkswagen.”

Toyota is making it easy for truckers to record their adventures

Have you ever wanted to record and broadcast all the the exploits you get into while driving your pickup truck? If so, Toyota is making it easier than ever to do just that.

Every 2016 Toyota Tacoma is going to come with a camera mount, ready for a GoPro device, on the roof. The camera itself isn’t included, but Wired predicts it will be a popular throw-in for dealers trying to close the deal with potential customers.

This is the first time a carmaker has put a GoPro mount on a vehicle, but it is in keeping with the other products favored by “adventure sports” enthusiasts.

To buy Toyota’s new hydrogen car you’ll need to pass an interview

If you’ve always wanted a hydrogen car, your chance is almost here—that is, if you live in California and close to one of the 10 public hydrogen fuel stations in the state.

Toyota announced Tuesday it will begin taking orders for its hydrogen fuel cell-powered car on July 20. The cars, which have an official range of 312 miles on a single fill of hydrogen, are expected to begin delivery in October.

Toyota’s marketing video says “we’re looking for the bold and the few.” And that’s an accurate assessment of its potential customer base. Even Toyota is putting limits on who gets to place an order for the Mirai, which starts at $57,500.

Customers who plan on garaging their vehicle outside of California are not eligible for a Toyota Mirai, the company says. For those who live in California, Toyota will use an application and phone interview to confirm eligibility based on proximity to fueling stations and various Mirai fit and driving preference questions. Both eligibility and vehicle availability will be used to determine when a customer receives an opportunity to place an order, according to Toyota.

The EPA-estimated 67 miles per gallon equivalent pushes the range of the Toyota Mirai past every other zero-emissions car on the market, including the all-electric Tesla Model S P85 D. Even with this high range, the Toyota Mirai faces a potentially crippling infrastructure challenge. There are only 12 public hydrogen fuel stations in the United States, according to the Department of Energy. Ten of those are located in California, making it the only feasible market for hydrogen cars.

Toyota does have plans to build out a 46 hydrogen stations in California, according to the company’s website. The company has not publicly set its sights beyond the state border, making long-distance travel impossible for now.

In a bid to coax Californians to buy the Mirai, the company is providing customers three years—or up to $15,000 worth—of free fuel. Customers also receive three years of 24-hour customer call support and an eight-year, 100,000-mile warranty.

The perks may not be enough to attract buyers looking for a zero emissions car. Electric vehicles, the hydrogen car’s primary competition, enjoys a far more extensive charging infrastructure in California and the rest of the U.S.

The U.S. led all countries based on volumes of new plug-in electric and plug-in electric hybrid vehicles registered during the first quarter, with nearly 15,000 registrations according to last week’s IHS Automotive Plug-in Electric Vehicle Index. Market share for EVs and PHEVs in the U.S. does remain low compared to gas-powered vehicles. These vehicles account for just 0.8% of the market during the quarter, according to IHS. Based on volume, the most popular EV/PHEV in the U.S. is the Tesla Model S.

For now, Toyota seems to understand the challenges and has set a low sales bar for itself. The company says it expects to sell 3,000 units of the Mirai by the end of 2017.

This is how you build a killer brand like Apple

Human beings are curious. They love to explore. And they love to shop. Many consumers—up to 25 million Americans—visit a mall on any given Saturday or Sunday. Sometimes they arrive with a list of priority items that they’re ready to purchase. Sometimes they just wander and browse. Sometimes they are looking to touch, feel, and experience products that they will later buy online.

If you have a brand, this is your chance to stand out from the crowd. Retailers tell us that strong brands sell without promotion. Consumers come into the store and ask for signature products. Weak brands sit on shelves, waiting to be scooped up at a steep markdown by bargain hunters.

In our experience, great brands can last forever—if you work them. Brands make consumers’ lives easier. Consumers love to love brands.

That’s what we call apostle brands. Think Apple AAPL, Amazon AMZN or Starbucks SBUX. But replicating their success is a real challenge. Apostle brands are rare. Few companies have brands whose signature products and services are widely revered everywhere. There are 10,000 multi-million-dollar consumer companies around the world, but only 100 of them can properly claim to have apostle brands. They offer magic and light. They provide entertainment, nourishment, imagination, and utter joy. They inspire enduring trust, loyalty, love, and almost evangelical endorsements and advocacy. To their fans, followers, and believers, they are like religions.

How do you convert customers into apostles? How do you build an apostle brand? In our book, Rocket: Eight Lessons To Secure Infinite Growth, we have synthesized our findings to create a set of eight branding rules.

Rule No. 1: Don’t ask your customers what they want (because they don’t know until you show them)

A few years ago, a global communications giant was considering the cell phone business. In focus groups, salesmen were invited to look at the box phone and were then asked, “When will you use it?” The salesmen said that they would BE MORE LIKELY put a quarter into a pay phone than pay $500 or $1,000 for an unwieldy box. As a result, the company put the cell phone idea on a back burner. This was an expensive error. It cost the company billions of dollars to buy its way back into the business after it had taken off. The consumer could not imagine a better way to make a phone call and certainly could not imagine paying for it. Success requires curiosity and courage, instinct, and a taste for the jugular. It requires you to look beyond simple answers and impulsive consumer rejection.

Few companies count the value of their best customers’ purchases and the value of the purchases that those customers promote through word-of-mouth advocacy. Our research supports the “rule of 2-20-80-150″4+.” The 2% of consumers that we call apostles personally responsible for a full 20% of the sales. To their friends and acquaintances they advocate up to 80% of a company’s sales. This combination of friends and self purchases deliver up to 150% of a company’s profits. Companies fight to sell the remaining 20% of their sales to “strangers” and generate losses chasing this business.

Toyota TM says that a complaint is a gift. The company tracks and processes every customer complaint. This operates as a system to stamp out repeated customer dissatisfaction. Complain once, let me fix it. Complain twice, shame on me. Complain three times, and I should be replaced. Toyota’s approach translates into higher resale value, a higher repurchase rate, and deeper loyalty.

Rule No. 4: Looks do count (because people really do judge a book by its cover)
Consumers use their eyes in every purchase. They look for beauty. They dream about a better world for themselves and their loved ones. The best dreamscape company in the world is Disney DIS. Little girls visiting Disney World go to the Magic Kingdom. They see Cinderella and Snow White. They carry the image in their subconscious. For many, it draws them back when they decide to marry. Disney has created a rich business by fulfilling fantasy. Visual brilliance costs a lot, but its value is priceless.

Rule No. 5: Transform your employees into passionate disciples (because love is truly infectious)
Walk into the Container Store TCS with a vague idea about a storage problem and ask for help. Within moments, a counselor will have you telling him all your storage and living problems, and soon he will be offering solutions. They call this “man in the desert” selling—listening, helping, engaging, suggesting. It is a perennial favorite company to work for. The Container Store associates are treated with respect, are paid twice the wage of competitors’ employees, and turn over at a fraction of the average rate.

The world has moved to 24/7. The consumers with the most disposable income have the least amount of time. But they have high-speed Internet lines at home and at work. And they want to buy what they want to buy when they want it.

There are those who advocate continuous improvement, incremental advances, and consolidation. But no one ever changed the world that way. No one ever really built an apostle brand that way. To do these things, you must show foresight, fearlessness, and fortitude. Big wins require big dreams. Natura Cosmeticos, a Brazilian company, started as a small shop and laboratory and quickly realized the enormous potential of the Amazon rain forest as a source of health-giving ingredients for beauty products. It now ranks as one of the world’s most profitable cosmetics companies, transforming the lives of millions of women in Latin America and driving up the standard of living for its 1.6 million female sales consultants. It got there by leaps and bounds.

Brands are fragile. They are subject to the laws of schismogenesis. This is a term from anthropology. It means that relationships are not stable. Brands work according to the same law. Brands are always moving—up, up, up or down, down, down.

Now is the time to write your story, make it come alive for all, and create infinite growth.

Michael Silverstein is a senior partner at Boston Consulting Group and co-author of Trading Up, Treasure Hunt, Women Want More and the $10 Trillion Dollar Prize. He is based in Chicago. Dylan Bolden, Rune Jacobsen and Rohan Sadjah are also senior partners at BCG.

Resigned Toyota exec won’t be charged with drug crimes

Recently resigned Toyota executive Julie Hamp will be released from a Japanese jail Wednesday after officials in the country dropped drug charges against the company’s former chief global communications officer.

Hamp, an America, was arrested on June 18 after authorities swiped a shipment of 57 pills of oxycodone she had sent to herself. Japan strictly regulates prescription drugs, and it’s a serious offense to bring the drugs into the country without express permission.

Hamp, who stepped down from her new role at the automaker amid the incident, will not be charged with illegally importing prescription drugs after prosecutors determined that the move was “not malicious,” according to reports from a Japanese news agency.

Toyota CEO Akio Toyoda stood by Hamp during the arrest and declared her a “friend” and an “invaluable” part of the company. However, Hamp stepped down from the top communications role anyway, which reversed a major step in the diversification of Toyota’s top ranks.

Honda, Toyota, Nissan want to change how you fill up the tank

The lack of fueling stations is one of the bigger—and more expensive—challenges that stand in the way of the widespread adoption of hydrogen-powered cars. In geographically massive places like the United States, it seems like an impossible task.

In Japan, hydrogen cars have at least a fighting chance, thanks largely to a push by automakers Toyota toyof, Nissan nsany, and Honda hndaf. Japan’s three biggest automakers announced Wednesday they will cover up to one-third of the operating costs for hydrogen stations run by infrastructure companies. Support will be capped at about 11 million yen (about $90,000) per station.

The joint effort was initially announced in February, but with little detail. This is the first time the companies have made specific financial commitments towards hydrogen infrastructure. The companies said they will also work to encourage new companies to enter the hydrogen supply business.

All three automakers are working on hydrogen fuel cell-powered cars, hence their willingness to invest in even a diminutive hydrogen station network. Toyota launched the Mirai in late 2014. The car, which the EPA says has a 312-mile range, will debut in the U.S. market (just California) this fall. Honda says it will bring a fuel cell vehicle (FCV) to market before April 2016 and Nissan has plans for one in 2017.

Hydrogen fuel cell vehicles are zero-emission vehicles that emit water vapor and warm air as exhaust—although the production of hydrogen may produce emissions, depending on the source. The most common way to produce hydrogen is through steam reforming, when high-temperature steam is combined with natural gas. Hydrogen can also be produced from water through electrolysis, which is expensive and energy intensive. It is also possible to use wind or solar power to make hydrogen.

Japan has 74 hydrogen fueling stations planned or constructed, which is leaps and bounds above the 12 public hydrogen fuel stations in the United States. Still, the hydrogen stations are rarely used and the infrastructure companies face difficulty operating the facilities, according to the three companies.

Their plan is to give medium-term support to these infrastructure companies (until about 2020) in tandem with government measures. Under the plan, about 100 stations will be constructed initially.

By then, the automakers predict that an advanced hydrogen fueling station network, coupled with the availability of several brands of hydrogen-powered cars, will lead to widespread adoption in Japan. Whether California (and the rest of the world) will see a similar push any time soon remains to be seen.

Toyota’s hydrogen car tops Tesla driving range

Owners of Toyota’s fuel cell-powered car of the future, which hits dealerships in California this fall, will be able to drive 312 miles on a single fill of hydrogen. It’s a compelling figure—an EPA-estimated 67 miles per gallon equivalent—that pushes the range of the Toyota Mirai past every other zero-emissions car on the market, including the all-electric Tesla Model S P85 D.

Yet, even with this high range, the Toyota Mirai faces a potentially crippling infrastructure challenge. There are only 12 public hydrogen fuel stations in the United States, according to the Department of Energy. Ten of those are located in California, making it the only feasible market for hydrogen cars.

Will $15,000 be enough to convince buyers to drop more than $58,000 on a car that can only be driven around parts of California?

Probably not. Tesla tsla owners, for instance, get free “fuel” for life at its more than 425 supercharger stations installed around the world. And that’s just to promote long-distance travel. There are more than 2,200 electric charging stations in California alone and 9,937 in the U.S., according to the DOE.

Toyota does have plans to build out a 46 hydrogen stations in California, according to the company’s website. The company has not publicly set is sights beyond the state border, making long-distance travel impossible for now.

This means the first U.S. buyers of the Toyota Mirai will likely fit the classic early-adopter mold. In other words, this is not a car for a timid technophobe.

Toyota has taken a lot of flack for its hydrogen car ambitions. Hydrogen cars face logistical, economic, even environmental challenges that make this a huge risk for the automaker.

Toyota has elicited this kind of skepticism before, only to win over consumers and create new categories within the automotive sector. The gas-electric hybrid Prius, which debuted in 1997, was considered a joke by many in the industry. The critics were were proven wrong when the car became a hit. Cumulative worldwide sales of the Prius surpassed 3.3 million last year.

While the logistical challenges of Mirai ownership seem to top those once touted by hybrid car naysayers, time will tell if Toyota has another dark horse winner almost a decade after its last big fuel mileage success.

Toyota’s diversity drive veers off-road as Julie Hamp quits

Toyota Motor Corp TOYOF said on Wednesday Julie Hamp, its first female managing offer, had resigned following her arrest last month on suspicion of illegally importing the painkiller oxycodone into Japan.

The American, who in April had become chief communications officer, notified Toyota of her intent to resign, the automaker said in a statement, adding that it had accepted after “considering the concerns and inconvenience that recent events have caused our stakeholders”.

Toyota declined to give further details, citing the ongoing investigation.

Hamp was arrested on June 18 after customs officials found tablets of oxycodone in a parcel shipped to her from the United States. Hamp said she did not think she had imported an illegal substance, according to the police.

Oxycodone is a prescription drug in both the United States and Japan. Bringing it into Japan requires prior approval from the government and it must be carried by the individual.

Following Hamp’s arrest, Toyota said it believed that she had no intent of breaking the law.

Hamp was appointed managing officer as part of a drive to diversify Toyota’s male-dominated, mostly Japanese executive line-up.

She joined Toyota’s North American unit in 2012 and in June relocated to Tokyo, where she was to be based.

“We remain firmly committed to putting the right people in the right places, regardless of nationality, gender, age and other factors,” Toyota said in its statement on Wednesday.

Cars made in America? Chrysler, Ford no longer qualify

The phrase “made in America” has always pulled at the hearts and wallets of loyal, red-blooded consumers, and never more so than in the automotive space. But according to research released Monday, the car company that qualifies as most American is….the Toyota Camry.

Cars.com released its 10th American Made Index (AMI) of the vehicles that qualify as the most American—based on where parts are manufactured (a vehicle must be made of at least 75% U.S. parts to even make the list), where the vehicle is built, and what percentage of the vehicles’ sales are U.S.-based, among other factors.

This year’s AMI yielded a few surprises. The Toyota Camry is, apparently, the most American vehicle on sale in the U.S. Surprise No. 2: Ford fell off the list entirely this year—even though the F-150 pickup topped the list in 2013 and 2014. (A Chrysler hasn’t shown up since 2012.) Surprise No. 3: Ten years ago, when Cars.com began compiling the AMI, 29 vehicles made the cut; this year, only seven did—not even enough for a Top Ten. Globalization is here.

So how many consumers actually care and/or know about their vehicle’s geographical roots? According to Patrick Olsen, the editor in chief of Cars.com, in 2011 23% of purchasing consumers would only buy American, a percentage that has jumped to 28% in 2015. But do they understand that a Toyota Camry is by measure more apple pie than a Dodge Challenger, which is manufactured in Canada? Probably not, but the car companies who make the tally find such accolades heavy-duty marketing fodder.

“It reinforces the Americanization story of Toyota,” says Bill Fay, general manager of Toyota Motor Sales, U.S. “We operate ten plants in the U.S., build more than 2 million vehicles here, and 71% of our sales [here in America] are vehicles built in North America.”